Graph and download economic data for 30-Year Fixed Rate FHA Mortgage Index (OBMMIFHA30YF) from 2017-01-03 to 2025-07-10 about FHA, 30-year, fixed, mortgage, rate, indexes, and USA.

Graph and download economic data for 30-Year Fixed Rate Jumbo Mortgage Index (OBMMIJUMBO30YF) from 2017-01-03 to 2025-07-10 about jumbo, 30-year, fixed, mortgage, rate, indexes, and USA.

Car loan interest rates in the United States decreased since mid-2024. Thus, the period of rapidly rising interest rates, when they increased from 3.85 percent in December 2021 to 7.91 percent in February 2024, has come to an end. The Federal Reserve interest rate is one of the main causes of the interest rates of loans rising or falling. If inflation stays under control, the Federal Reserve will start cutting the interest rates, which would have the effect of the cost of car loans falling too. How many cars have financing in the United States? Car financing exists because not everyone who wants or needs a car can purchase it outright. A financial institution will then lend the money to the customer for purchasing the car, which must then be repaid with interest. Most new vehicles in the United States in 2024 were purchased using car loans. It is not as common to use car loans for purchasing used vehicles as for new ones, although over a third of used vehicles were purchased using loans. The car industry in the United States The car financing business is huge in the United States, due to the high sales of both new and used vehicles in the country. A lot of the United States is very car-centric, which means that, outside large cities, it can often be difficult to do their daily commutes through other transportation methods. In fact, only a small percentage of U.S. workers used public transport to go to work. That is one of the factors that has helped establish the importance of the automotive sector in North America. Nevertheless, there are still countries in Asia-Pacific, Africa, the Middle East, and Europe with higher car-ownership rates than the United States.

The average price per square foot of floor space in new single-family housing in the United States decreased after the great financial crisis, followed by several years of stagnation. Since 2012, the price has continuously risen, hitting *** U.S. dollars per square foot in 2022. In 2024, the average sales price of a new home exceeded ******* U.S. dollars. Development of house sales in the U.S. One of the reasons for rising property prices is the gradual growth of house sales between 2011 and 2020. This period was marked by the gradual recovery following the subprime mortgage crisis and a growing housing sentiment. Another significant factor for the housing demand was the growing number of new household formations each year. Despite this trend, housing transactions plummeted in 2021, amid soaring prices and borrowing costs. In 2021, the average construction cost for single-family housing rose by nearly ** percent year-on-year, and in 2022, the increase was even higher, at close to ** percent. Financing a house purchase Mortgage interest rates in the U.S. rose dramatically in 2022 and remained elevated until 2024. In 2020, a homebuyer could lock in a 30-year fixed interest rate of under ***** percent, whereas in 2024, the average rate for the same mortgage type was more than twice higher. That has led to a decline in homebuyer sentiment, and an increasing share of the population pessimistic about buying a home in the current market.

Description PREFERRED BANK (PFBC) Preferred Bank (“PFBC”) is a community bank located in California that provides banking service to small and mid-sized businesses (“SMEs”) in California, Texas and New York. PFBC’s initial customers were from the Chinese community of Southern California. PFBC also originates and services SBA and commercial real estate loans. PFBC operates out of its headquarters in Los Angeles, California and twelve locations in California, one in Houston and one in New York City. PFBC has organically grown in Texas and San Francisco. PFBC is one of the most efficient bank in the United States (26% Efficiency Ratio) due to its streamlined loan origination process. PFBC has grown EPS by almost 18% per year over the past five and 22% over the past ten years. This growth is driven by providing commercial and commercial real estate loans which have grown by 15% per year over the past ten years and 10% per year over the past five years. PFBC’s lending franchise and loan purchase generates an average loan yield of 7.1% and has organically grown loans by 10% per year over the past five years. The strong loan growth is comprised of criticized plus watch list loans of 1.6%, non-performing assets (“NPAs”) of 0.5% and a loan loss reserve to NPAs of 435%. PFBC finances its loans through non-interest bearing and interest bearing deposits generating a low cost of funds of 3.6%. The resulting net interest margin (NIM) is 4.1% and is sustainable as funding costs will decline with declining loan yields. PFBC’s largest shareholder is its management, which holds 8% of its common stock. Historically, PFBC has generated on average less than five percentage of its revenue from non-interest bearing or spread activities. From 2013 to 2023, PFBC realized operational leverage from its loan growth over a slower growing fixed cost base. PFBC was founded in 1991 in Los Angeles, California to provide banking services to the Chinese community in Southern California. Over time, PBFC serviced a larger customer base including non-Chinese customers in Southern California. PFBC’s growth from Southern California came about from organic growth (opening branches) in San Francisco (2013) and Houston (2023). Expansion in New York City (2015) came from the acquisition of a Chinese bank, UIB, located in Flushing, NY. From 2013 to 2023, PFBC’s book value plus dividends increased by 15% per year and EPS grew by 22% per year. From 2020 to 2024, MSBC repurchased shares at a rate of about 2.5% per year. A bank productivity measure is the efficiency ratio, non-interest expense divided by total revenues. A good benchmark for efficiency is a 50% efficiency ratio. The average efficiency ratio for commercial banks in Q2 2024 was 56%. PFBC’s efficiency ratio is 26% for the trailing three quarters ending Q3 2024. PFBC has generated on average returns on equity of 18% over the past five years. This has been an increase from an average of 13% in the previous five-year period. The average incremental return on equity over the past five years has been 27%, see the calculation below. The ability to generate these returns is the result of increased efficiency and expansion in existing and new markets. Loan growth has been robust with 12% per year growth from 2013 to 2018 to 18% per year growth from 2019 to 2023. Below is a return on incremental equity capital (“RoIEC”) analysis for PFBC: PFBC has three levers for earnings growth: 1) expansion into new markets; 2) increased efficiency; and 3) distributing excess cash by buying back shares. PFBC has economies of scale in the service markets it currently or historically competed in (Local real estate and business loans). They also have scale based upon the volume of the loans they originate; so as they grow, they should become more efficient. Los Angeles, San Francisco, Queens and Houston and Ethnic Chinese Loan Market Is Apple a good investment? Apple Cost of Equity Apple Cost of Debt How to Invest in OpenAI How to Invest in SpaceX PFBC competes in California’s Los Angeles and San Francisco, New York City’s and Houston’s banking markets. The table below illustrates the population, income and housing price growth over the past five and ten years in the five MSAs MSBC competes in: These are healthy growth rates for PFBC to provide loans into. Downside Protection PFBC’s risks include both operational leverage and financial leverage. Operational leverage is based upon the fixed vs. variable costs of the operations. There are economies of scale related to some functions such as loan processing and cross-selling of banking services. For banks the amount of non-interest income can provide downside protection especially if this revenue is recurring as is the case for UBAB. Over the past five years, about 5% of PFBC’s revenues were from non-interest income. PFBC’s balance sheet, as of September 30, 2024 is comprised of $805 million of cash, $405 million of securities...